Rep. Stephanie A. Kifowit

Filed: 3/21/2023





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2    AMENDMENT NO. ______. Amend House Bill 925 by replacing
3everything after the enacting clause with the following:
4    "Section 1. Short title. This Act may be cited as the
5Veteran Service Organizations State Charter Act.
6    Section 5. State charter. A veteran service organization
7shall be considered state chartered when the organization
8meets all of the requirements listed in this Act and the
9organization's application for state charter status has been
10approved by the Attorney General. Upon approval, the Attorney
11General shall issue a letter granting state charter status to
12the organization.
13    Section 10. Granting of state charter status. The Attorney
14General shall grant state charter status to any organization
15that has demonstrated that all requirements for obtaining



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1state charter status have been met.
2    Section 15. State charter requirements. To qualify for
3state charter status, a veteran service organization must:
4        (1) Have been formed by and for veterans with a board
5    composition of mostly veterans or have annual expenditures
6    that demonstrate that the majority of the organization's
7    expenses reflect support for veterans, service members,
8    and their families; or (ii) have a paid membership of at
9    least 15 individuals and be associated with a
10    congressionally chartered organization; or (iii) provides
11    responsible aid, assistance, or services to the veteran
12    community.
13        (2) Possess tax-exempt status from the Internal
14    Revenue Service either under Section 501(c)(3) or Section
15    501(c)(19) of the Internal Revenue Code and have the
16    primary charitable purpose of providing service or
17    assistance to veterans, their spouses, or their
18    dependents.
19        (3) Possess a current certificate of good standing as
20    an Illinois registered not-for-profit organization from
21    the Secretary of State.
22        (4) Obtain and maintain ongoing registration and
23    compliance under the Charitable Trust Act with the
24    Charitable Trust Bureau of the Attorney General's Office
25    or substantiation for an exemption.



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1        (5) For organizations with veteran service officers,
2    demonstrate that each veteran service officer possesses a
3    valid U.S. Department of Veterans Affairs accreditation or
4    that such accreditation is pending.
5    Section 20. Application for state charter status. A
6veteran service organization may submit an application for
7state charter status to the Attorney General. All supporting
8documentation demonstrating that each of the requirements
9listed in this Act have been met shall be provided with the
11    Section 25. Attestation of compliance. Any application for
12state charter status shall include the following statement, on
13organizational letterhead and signed by all officers: "All
14officers for (insert lawful organizational name) do hereby
15attest that all requirements for a state charter have been
16met, that there are no past or ongoing enforcement actions or
17lawsuits against the organization or any of its officers for
18violations or suspected violations of the Consumer Fraud and
19Deceptive Business Practices Act, or the Military Veterans
20Assistance Act, and that we will notify the Attorney General
21within 30 days if, at any point, the organization no longer
22meets one or more of the requirements for state charter



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1    Section 30. Denial of state charter. The Attorney General
2shall deny an application for state charter status to any
3organization that does not meet all requirements for state
4charter status in Section 20. Any organization whose state
5charter application has been denied may resubmit that
6application once all deficiencies have been corrected.
7    Section 35. Duration of state charter status. State
8charter status shall be valid for 5 years. A veteran service
9organization must reapply for state charter status prior to
10the expiration of its current state charter status.
11    Section 40. Revocation. If the Attorney General is made
12aware, either through notification as provided in Section 30
13or through other information or evidence, that an organization
14that has been granted state charter status no longer meets one
15or more of the requirements of Section 20, the Attorney
16General may revoke the state charter status. Nothing in this
17Section is intended to take away or limit any powers of the
18Attorney General under common law or other statutory law, and
19the Attorney General may, in his or her sole discretion,
20request that a court revoke state charter status based on
21other conduct not specifically listed in this Section.
22    Section 45. Publication of state chartered veteran service
23organizations. The Attorney General shall maintain a publicly



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1accessible list of state chartered veteran service
3    Section 50. Violation. It is a violation of Section 9 of
4the Military Veterans Assistance Act for any person, group, or
5entity to assert state charter status where such status has
6not been granted in accordance with this Act or where such
7status has been revoked.".